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Category Archives: Options

Options news updates from John Lothian News.

JLN Options: Chicago Board Options Exchange’s Inquiry Focuses On Traders Standard

Lead Stories Chicago Board Options Exchange’s Inquiry Focuses On Traders WSJ.com By Jacob Bunge CHICAGO (Dow Jones)–The Chicago Board Options Exchange has launched an inquiry into the activities of traders on its markets, examining several years of potential rule violations in the handling of stock-options orders. The exchange operator’s market regulation division this week contacted firms that do business on the CBOE to review “apparent violations” of rules over a three-year period ended in January, according to a letter CBOE sent to member firms this week. CBOE Holdings Inc. (CBOE), which runs the biggest U.S. stock-options exchange by volume, separately…

Thomas McKeon, CFA, Principal at Clothier Springs Capital Management Standard

Thomas McKeon spent 11 years as a market-maker and floor trader, trading options on the Philadelphia Stock Exchange, before switching to the portfolio management side of the business in 1995. He was previously co-founder, principal and chief investment officer at West Chester Capital Advisors in Pennsylvania, where he managed multi-million dollar equity portfolios for clients including the Pennsylvania Public School Employees’ Retirement System (PAPSERS), the West Chester Borough Police Pension, and Special Policeman’s Fund of North Miami (FL). He spoke with MarketsWiki’s Sarah Rudolph about the impetus for his move to portfolio management and using options on ETFs to enhance…

JLN Options: Breaking News: NYSE Arca Announces Plans to Introduce Mini-Options Standard

Lead Stories Breaking News:  NYSE Arca Announces Plans to Introduce Mini-OptionsPending approval by the Securities and Exchange Commission, NYSE Arca Options is pleased to introduce mini-options contracts on SPDR® S&P 500® (SPY), Apple, Inc. (AAPL), SPDR® Gold Trust (GLD), Google Inc. (GOOG), and Amazon.com Inc. (AMZN). NYSE Arca Options is taking the concept of listing and trading parallel options products of reduced value and size on the same underlying security as are currently listed on key indices and applying it to other high priced underlying securities. High priced underlying securities may have relatively expensive options and even a small percentage…

JLN Options: OCC ANNOUNCES JOSEPH CORCORAN AS NEW HEAD OF GOVERNMENT RELATIONS Standard

Lead Stories OCC ANNOUNCES JOSEPH CORCORAN AS NEW HEAD OF GOVERNMENT RELATIONSCHICAGO (April 3, 2012) OCC announced today that Joseph Corcoran has joined OCC as First Vice President and Head of Government Relations. Mr. Corcoran comes to OCC from NYSE Euronext where he served as Chief Counsel in NYSE Regulation and the Office of Legal and Government Affairs. http://jlne.ws/HlC1Pi TVIX Premium To Indicative Value Creeping Back Up? Seeking Alpha If you thought the TVIX (VelocityShares Daily 2x VIX Short-Term ETN) story was behind us, you might want to think again.No, I am not talking about the recent news that FINRA…

JLN Options: Volatility Lowest Since ’07 in Stocks, Bonds, Currencies Standard

Lead Stories Volatility Lowest Since ’07 in Stocks, Bonds, Currencies By Nikolaj Gammeltoft, Liz Capo McCormick and Cecile Vannucci, BloombergApr 1, 2012 Markets for equities, bonds and currencies are the calmest they’ve been since 2007, and that’s making some investors nervous.Options that protect against Standard & Poor’s 500 Index losses plunged 64 percent in the last two quarters, the most ever, data compiled by Bloomberg show. Interest-rate volatility is near a five-year low, while demand for hedges against extreme moves in the dollar is close to the weakest since 2008. Bank of America Corp.’s Market Risk cross-asset volatility index reached…

JLN Options: FINRA Investigating Marketing of Exchange-Traded Notes (ETNs) Standard

Lead Stories FINRA Investigating Marketing of Exchange-Traded Notes (ETNs) March 29, 2012 ReutersThe regulator that oversees the sale of investment products to investors is investigating how firms are marketing exchange-traded notes, a niche product that experienced a market meltdown this year.A spokeswoman for the Financial Industry Regulatory Authority said Thursday the regulator is “looking at the events and trading” activity surrounding a sharp plunge in the price of an exchange-traded note designed to track stock market volatility.FINRA began its inquiry after the Credit Suisse-managed VelocityShares Daily 2x Short-Term exchange-traded note, or ETN, lost half its value in just two days…

JLN Options: Chaos Over a Plunging Note Standard

Lead Stories Chaos Over a Plunging Note Complex Security Drops 60% in Value in Past Week; SEC Is on the CaseBy TOM LAURICELLA, JEAN EAGLESHAM and CHRIS DIETERICH, WSJ.comRegulators are examining volatile trading in a complex exchange-traded note that caused it to lose 60% of its value in the past week.The Securities and Exchange Commission is looking into the VelocityShares 2x Long VIX Short Term Exchange note, managed by Credit Suisse Group AG, which had about $700 million in assets before the decline, according to people familiar with the matter. The SEC review is preliminary, the people said. The scrutiny…

JLN Options: Volatility ETFs Thumped on VIX Multiyear Low, Contango Standard

Lead Stories Volatility ETFs Thumped on VIX Multiyear Low, Contango ETF Trends March 28th at 9:01am by John SpenceApril may be the cruelest month, but March has been pretty bad for volatility exchange traded products designed to track VIX futures contracts. First, these volatility-linked funds have dropped sharply this month along with the CBOE Volatility Index, which touched its lowest levels since the summer of 2007. Second, the exchange traded funds and notes have been hit by so-called contango in the VIX futures market.http://jlne.ws/GYwZLj How The VIX ETN Lost 50% In 48 Hours Seeking Alpha March 28, 2012 As the…

JLN Options: Options Market Makers Flock to ISE Standard

Lead Stories Options Market Makers Flock to ISEPeter Chapman, Traders Magazine Online News, March 27, 2012The International Securities Exchange, in a bid to reverse an ongoing decline in its market share, is expanding the ranks of its market makers.In the past seven months, ISE has signed up five new market makers and expects to add “a couple more,” according to exchange executives. From 20 market makers in July 2011, ISE now boasts 25. Behind the jump is a change in the way ISE allocates options to its second-tier market makers, known as Competitive Market Makers. Last September, ISE began allowing…